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Chapter 3 Collecting Information & Forecasting Demand. 1) As the manager of an organization that is attempting to build a Marketing Information System (MIS), you have been informed that a MIS is built upon three fundamental information sources. The sources are ________, marketing int...

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Chapter 3 Collecting Information & Forecasting Demand. 1) As the manager of an organization that is attempting to build a Marketing Information System (MIS), you have been informed that a MIS is built upon three fundamental information sources. The sources are ________, marketing intelligence activities, and marketing research. D) internal company records 2) The company's marketing information system should be a mix of what managers think they need, what managers really need, and ________. E) what is economically feasible 3) The heart of the internal records system is the ________. C) order-to-payment cycle 4) The ________ begins with sales representatives and dealers sending orders to the firms and is followed by the sales department preparing invoices, and finally generating shipping and billing documents which are then sent to various departments. E) order-to-payment cycle 5) By equipping its sales force with handheld devices with bar-code readers and Internet connections to speed inventory assessment, TaylorMade allows sales executives to have significantly more time to interact with their consumers. This is an example of the use of technology in improving ________. A) sales information systems 6) Companies can practice targeted marketing by using ________-records of Web site usage stored on personal browsers. C) cookies 7) The internal records system supplies results data, but the marketing intelligence system supplies ________ data. D) happenings 8) A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. D) marketing intelligence system 9) A company can take several steps to improve the quality of its marketing intelligence. Which of the following best describes the practice used by McDonald's when it sent pseudo customers to assess stores' internal speed standards? B) motivating intermediaries to pass along important intelligence 10) A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors' published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligence. C) external networks 11) When gathering marketing intelligence, companies often use the 2000 U.S. census, which provides an in-depth look at the population swings, demographic groups, regional migrations, and changing family structure of 281+ million people. Which of the following steps to improve the quality of a company marketing intelligence system would be most closely associated with this illustration? B) A company can take advantage of government data sources. 12) When a company acquires consumer-panel data from firms like A.C. Nielsen Company and Information Resources Inc., which of the following steps to improve the quality of a company marketing intelligence system is the company resorting to? E) purchasing information from outside research firms and vendors

13) Elance.com is a service provider that allows contractors to describe their level of satisfaction with subcontractors. This is an example of a(n) ________. E) distributor or sales agent feedback site 14) The sites which offer positive or negative product or service reviews and are built by the retailers of a particular product or service are called ________. B) distributor or sales agent feedback sites 15) A ________ is "unpredictable, short-lived, and without social, economic, and political significance." A) fad 16) A ________ is a direction or sequence of events that has some momentum and durability; it reveals the shape of the future and can provide strategic direction. C) trend 17) A ________ is a "large social, economic, political, and technological change that is slow to form, and once in place, influences us for some time—between seven and ten years, or longer." D) megatrend 18) Which of the following is true about trends in worldwide population growth? E) Population growth is highest in developing countries. 19) A growing population does not mean growing markets unless ________. C) people have sufficient purchasing power 20) In the U.S., people born between the years ________ are called boomers. B) 1946 and 1964 21) Firms find "reverse innovation" advantage by ________. C) introducing a commodity in a developing country and then distributing it globally 22) ________ refer to groups of individuals who are born during the same time period and travel through life together. A) Cohorts 23) According to the 2000 Census, which of the following is the largest group in the United States? A) Whites 24) The three largest subgroups of the Hispanics in the U.S. are ________, ________, and ________. C) Mexican; Puerto Rican; Cuban 25) Which of the following is true about the growth of the Hispanic population in the U.S.? E) Hispanics are the fastest growing consumer group in the U.S. 26) The traditional household consists of ________. A) a husband, wife, and children (and sometimes grandparents) 27) By 2010, projections indicate that the largest category of households will be composed of ________. A) childless married couples and empty nesters 28) Which of the following is likely to occur during economic downturns? D) The purchasing power of the people declines 29) Which of the following economies provide limited opportunities to international marketers to develop product sales? B) subsistence economies

30) In response to the U.S. income distribution trend toward ________, Levi-Strauss introduced premium Levi's Capital E line to upscale retailers and the economy Levi Strauss Signature line to mass-market retailers. E) low and high incomes 31) In the U.S., consumer expenditures on homes and big ticket items tend to slacken during recessions because ________. C) the consumers have a high debt-to-income ratio 32) Which of the following elements of sociocultural environment can be associated with the growing demand for "social surrogates" like social networking sites, television, etc? C) views of others 33) Today, corporations need to make sure that they are good corporate citizens and that their consumer messages are honest in order to positively align themselves with consumers' ________. B) views of organizations 34) People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ usually live more frugally, drive smaller cars, and wear simpler clothing. D) Changers 35) People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ usually eat, dress, and live well. A) Makers 36) People vary in their views of society and their consumption patterns often reflect their social attitudes. ________ are a major market for movies, music, surfing, and camping. C) Escapers 37) ________ beliefs and values are passed from parents to children and reinforced by social institutions —schools, churches, businesses, and governments; they are very difficult to change. D) Core 38) Which of the following would be the best illustration of a secondary belief or value? D) belief in getting married early 39) Each society contains ________, groups with shared values emerging from their special life experiences or circumstances. D) subcultures 40) Which of the following is the largest contributor to global warming, contributing almost a quarter of the carbon dioxide in the environment? C) electrical power plants 41) Which of the following is the second largest contributor to global warming, accounting for roughly a fifth of carbon emissions? A) transportation 42) Firms whose products require ________ resources—oil, coal, platinum, zinc, silver—face substantial cost increases as depletion approaches. D) finite nonrenewable 43) Prestige LLC, a small company that manufactures specialty cereals and energy bars, wants to launch a "green marketing" program in response to heightened consumer awareness about environmental issues. What should the company do to maximize the program's chances of being successful? A) demonstrate that the products will benefit both customers and the society in the long-term 44) When a company is said to have engaged in "greenwashing," it means that ________. D) the company's products are not nearly as green and environmentally beneficial as its marketing might suggest

45) Which of the following consumer environmental segments cares a great deal about the environment, but doesn't seem to have the knowledge or resources to take action? E) dream greens 46) The consumer environmental segment termed ________ holds the view that the environment is not a huge concern and that business and industry is doing its part to help. This may explain why they don't feel the need to take action themselves—even as they cite lots of barriers to doing so. They are also the largest consumer environmental segment. B) business first greens 47) The consumer environmental segment termed ________ claims to be knowledgeable about environmental issues, but does not express pro-green attitudes or behaviors. Indeed, it is practically hostile toward pro-environmental ideas. This segment has chosen to reject prevailing notions about environmental protection and may even be viewed as a potential threat to green initiatives. C) mean greens 48) Which of the following is true about the technology trends that marketers should monitor? D) The pace of change is accelerating today. 49) Mandatory recycling laws have boosted the recycling industry and launched dozens of new companies making new products from recycled materials. Which of the following most closely resembles the situation discussed above? D) Government pollution control norms increase the production of pollution control equipment. 50) An unintended effect of business legislation is ________. E) slowing economic growth 51) An important force affecting business is the ________ movement, a movement of citizens and government organized to strengthen the rights and powers of buyers in relation to sellers. B) consumerist 52) Companies can prepare as many as ________ different types of demand estimates. D) 90 53) The demand estimates of an organization comprise of five space levels. They are world, country, region, territory, and ________. C) customer 54) The ________ market is the set of consumers with an adequate interest, income, and access to a particular offer. B) available 55) The ________ market is the part of the qualified available market the company decides to pursue. C) target 56) The ________ market is the set of consumers who are buying the company's product. D) penetrated 57) When the government of any country restricts the sale of a particular commodity to certain groups— for example, restricting sales of alcohol to individuals above the age of 21—the eligible consumers who have income, interest, access and qualification constitute the ________. E) qualified available market 58) Jeanine would like to own a Mercedes but is unable to afford one at this time. Jeanine is part of the ________ for this product. A) potential market 59) ________ for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program. C) Market demand

60) With an increase in marketing expenditure, market demand ________. C) increases first at an increasing rate, then at a decreasing rate 61) The base sales of an organization that takes place even without any demand-stimulating expenditures is called ________. C) market minimum 62) The distance between the market minimum and the market potential shows the overall ________. A) marketing sensitivity of demand 63) A low market-penetration index indicates ________. B) substantial growth potential for all firms 64) Only one level of industry marketing expenditure will actually occur. The market demand corresponding to this level is called the ________. C) market forecast 65) A company can expect to expand its market share to a large extent when ________. B) its sharepenetration index is low 66) During recession, the market demand curve which is a function of marketing expenditure ________. D) shifts downward 67) The sales goal set for a product line, company division, or sales representative of an organization is called ________. C) sales quota 68) A ________ is a conservative estimate of the expected volume of sales, primarily for making current purchasing, production, and cash flow decisions. A) sales budget 69) ________ is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment. E) Market potential 70) ________ is the company's estimated share of market demand at alternative levels of company marketing effort in a given time period. C) Company demand 71) ________ is the sales limit approached by company demand as company marketing effort increases relative to that of competitors. D) Company sales potential 72) A company's sales potential would be equal to market potential if ________. E) the company gets 100 percent share of the market 73) ________ is the maximum sales available to all firms in an industry during a given period, under a given level of industry marketing effort and environmental conditions. E) Total market potential 74) Suppose an individual buyer purchases three pairs of shoes each year at $50 each pair and that there are 50 million such consumers in the economy. Compute the total market potential for shoes. D) $7,500 million 75) The ________ method of determining area market potential calls for identifying all the potential buyers in each market and estimating their potential purchases. C) market-buildup 76) An efficient method of estimating area market potentials makes use of the ________, developed by the U.S. Bureau of the Census in conjunction with the Canadian and Mexican governments. It classifies

all manufacturing into 20 major industry sectors and further breaks each sector into a six-digit, hierarchical structure. E) North American Industry Classification System 77) Which of the following organizations is likely to use the multiple-factor index method to estimate the market potential? E) a firm that manufactures fashionable clothes for teenagers 78) Which of the following is true of the various elements of the multi-factor index method of estimating area market potentials? B) The weights in the buying-power index are somewhat arbitrary. 79) Suppose Concrete Express, a cement manufacturing firm, finds that its sales have increased by 3 percent this year, while industry sales have increased by 5 percent. This implies that ________. B) Concrete Express is losing its relative standing in the cement industry 80) For which of the following categories of products will demand forecasting be easiest? C) goods which are produced in an oligopoly market 81) Novamalt Inc., a manufacturer of health drinks, plans to introduce its new range of woman health drinks into the market. It involves a specialized marketing research firm to forecast the sales of this product. The research firm analyzes past buying behavior of customers and uses time-series analysis for making the sales forecasts. Which of the following information bases is being used by the research firm in this scenario? C) what people have done 82) Timeseries analysis method of forecasting sales breaks past time series into four components- trend, cycle, seasonal, and ________. C) erratic 83) ________ projects the next period's sales by combining an average of past sales and the most recent sales, giving more weight to the latter. E) Exponential smoothing 84) ________ measures the impact of a set of causal factors (such as income, marketing expenditures, and price) on the sales level. B) Statistical demand analysis 85) The sales forecasting method of ________ builds sets of equations that describe a system and statistically derives the different parameters that make up the equations statistically. C) econometric analysis

86) Marketers have little information about how consumption patterns vary across and within countries. FALSE Page Ref: 68 Objective: 1 Difficulty: Easy

87) Companies with superior information enjoy a competitive advantage. TRUE Page Ref: 69 Objective: 1 Difficulty: Easy

88) Many firms use the Internet and extranets to improve the speed, accuracy, and efficiency of the order-to-payment cycle. TRUE Page Ref: 70 Objective: 2 Difficulty: Easy

89) Few consumers actually delete cookies frequently. When customers do not delete cookies, they expect customized marketing appeals and deals. TRUE Page Ref: 70 Objective: 2 Difficulty: Moderate

90) Mailing of a new offer to a handful of selected customers instead of all customers reduces the response rate to the offer. FALSE Page Ref: 71

Objective: 2 Difficulty: Moderate

91) Competitive intelligence gathering is inherently illegal and unethical. FALSE Page Ref: 72 Objective: 3 Difficulty: Easy

92) If a company were pursuing a policy of networking externally to gather marketing intelligence, it might collect competitors' ads or look up news stories about competitors. TRUE Page Ref: 72 Objective: 3 Difficulty: Easy

93) One of the ways to find relevant online information on competitors' strengths and weaknesses might be to frequent distributor or sales agent feedback sites. TRUE Page Ref: 73 Objective: 3 Difficulty: Easy

94) The competitive intelligence function works best when it is closely coordinated with the decisionmaking process. TRUE Page Ref: 73 Objective: 3 Difficulty: Easy

95) A fad is more predictable and durable than a trend. FALSE Page Ref: 74 Objective: 3 Difficulty: Easy

96) A new market opportunity generally guarantees success, if the new product is technically feasible. FALSE Page Ref: 74 Objective: 4 Difficulty: Moderate

97) Demographic developments are often unpredictable. FALSE Page Ref: 75 Objective: 4 Difficulty: Easy

98) Population growth is highest in countries and communities that can least afford it. TRUE Page Ref: 75 Objective: 4 Difficulty: Easy

99) There is a global trend toward an aging population. TRUE Page Ref: 75 Objective: 4 Difficulty: Easy

100) The basis of cohort segmentation is that the experiences of key defining moments during the time when an individual becomes an adult can influence his or her values, preferences, and buying behaviors for the rest of his or her life. TRUE Page Ref: 76 Objective: 4 Difficulty: Easy

101) Marketing strategies of firms should not consider the ethnic and racial diversity existing in their markets. FALSE Page Ref: 77 Objective: 4 Difficulty: Easy

102) Consumers belonging to the same ethnic group have identical tastes and preferences. FALSE Page Ref: 77 Objective: 4 Difficulty: Easy

103) Of all illiterate adults in the world, two-thirds are women. TRUE Page Ref: 77 Objective: 4 Difficulty: Easy

104) Households comprising of single, separated, widowed, and divorced individuals generally demand larger apartments, and expensive appliances, furniture, and furnishings.

FALSE Page Ref: 77 Objective: 4 Difficulty: Easy

105) The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability. TRUE Page Ref: 77 Objective: 4 Difficulty: Easy

106) Industrial economies provide limited marketing opportunities for luxurious goods. FALSE Page Ref: 78 Objective: 4 Difficulty: Easy

107) Markets with a segment of very wealthy consumers, but high income disparity, present few opportunities to marketers. FALSE Page Ref: 78 Objective: 4 Difficulty: Moderate

108) Business has responded to increased awareness of nature's fragility and finiteness by producing wider varieties of camping, hiking, boating, and fishing gear such as boots, tents, backpacks, and accessories. TRUE Page Ref: 79

Objective: 4 Difficulty: Easy

109) Secondary beliefs and values are passed on from parents to children and rein...